-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, TPmNYHDvfsFgKvMl/Wdaa8S9O5s7cZGw6DpMLP+EMJIawEh9FmLGQ3ZdfWud6jLO zu9hFZQEMuk8rdaPvcx7Yg== 0000030554-98-000057.txt : 19981207 0000030554-98-000057.hdr.sgml : 19981207 ACCESSION NUMBER: 0000030554-98-000057 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19981204 ITEM INFORMATION: FILED AS OF DATE: 19981204 FILER: COMPANY DATA: COMPANY CONFORMED NAME: DUPONT E I DE NEMOURS & CO CENTRAL INDEX KEY: 0000030554 STANDARD INDUSTRIAL CLASSIFICATION: PLASTIC MAIL, SYNTH RESIN/RUBBER, CELLULOS (NO GLASS) [2820] IRS NUMBER: 510014090 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-00815 FILM NUMBER: 98764124 BUSINESS ADDRESS: STREET 1: 1007 MARKET ST CITY: WILMINGTON STATE: DE ZIP: 19898 BUSINESS PHONE: 3027741000 8-K 1 CURRENT REPORT SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of Earliest Event Reported) December 4, 1998 E. I. du Pont de Nemours and Company (Exact Name of Registrant as Specified in Its Charter) Delaware 1-815 51-0014090 (State or Other Jurisdiction (Commission (I.R.S Employer of Incorporation) File Number) Identification No.) 1007 Market Street Wilmington, Delaware 19898 (Address of principal executive offices) Registrant's telephone number, including area code: (302) 774-1000 1 Item 5. Other Events ------------ On September 28, 1998, the company's Board of Directors approved a plan to divest Conoco. An initial public offering of Conoco common stock was made on October 21, 1998. The company now indirectly owns approximately 70 percent of Conoco common stock, which represents approximately 92 percent of the combined voting rights of all classes of common stock. The company intends to follow this with a tax-free split off of its remaining Conoco shares to DuPont shareholders no later than third quarter 1999. Accordingly, beginning in the third quarter of 1998, the company's consolidated financial statements and notes report its petroleum business as discontinued operations. Attachment I - Consolidated Industry Segment Information - Continuing Operations - Consolidated Industry Segment Information Excluding Impact of Nonrecurring items - Continuing Operations Attachment II - Five-Year Financial Review Restated presentation reflects the petroleum business as discontinued operations. 2 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. E. I. DU PONT DE NEMOURS AND COMPANY (Registrant) /s/ D. B. Smith ------------------------------------ D. B. Smith Assistant Controller December 4, 1998 3 ATTACHMENT I PAGE 1 OF 3 E. I. DU PONT DE NEMOURS AND COMPANY AND CONSOLIDATED SUBSIDIARIES CONSOLIDATED INDUSTRY SEGMENT INFORMATION - CONTINUING OPERATIONS (unaudited) (Dollars in millions)
1998 ---------------------------------------------- Sept. 1st Qtr. 2nd Qtr. 3rd Qtr. YTD -------- -------- -------- ------- AFTER-TAX OPERATING INCOME (LOSS) - ------------------------------------ Chemicals .......................... $174 $155 $ 146 $ 475 Fibers ................................. 138 175 125 438 Polymers ............................... 226 235 181 642 Life Sciences ...................... 89 249 (813) (475) Diversified Businesses ............. 80 61 (126) 15 ---- ---- ----- ------ ATOI from Continuing Operations ........ 707 875 (487) 1,095 Interest and Other Corporate Expenses, Net of Tax ........................... (70) (81) (77) (228) ---- ---- ----- ------ INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE EXTRAORDINARY ITEM ................................. $637 $794 $(564) $ 867 ==== ==== ===== ====== 1997 ----------------------------------------------------------- 1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. Total -------- -------- -------- -------- ------- AFTER-TAX OPERATING INCOME (LOSS) - --------------------------------- Chemicals ........................ $140 $135 $ 152 $ 163 $ 590 Fibers ........................... 229 239 234 260 962 Polymers ......................... 205 255 224 227 911 Life Sciences ................ 140 243 (657) (516) (790) Diversified Businesses ....... 54 83 (170) 18 (15) ---- ---- ----- ----- ------ ATOI from Continuing Operations .. 768 955 (217) 152 1,658 Interest and Other Corporate Expenses, Net of Tax ........... (58) (31) (56) (81) (226) ---- ---- ----- ----- ------ INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE EXTRAORDINARY ITEM ............. $710 $924 $(273) $ 71 $1,432 ==== ==== ===== ===== ====== - ------------------ See Notes on the following page.
4 ATTACHMENT I PAGE 2 OF 3 [FN] 1998 - ---- First quarter and second quarter include charges of $85 and $45, respec- tively, within the Fibers segment attributable to employee separation costs and the shutdown of related manufacturing facilities. Third quarter includes a charge of $256 resulting from a Company-wide produc- tivity improvement initiative as follows: Chemicals - $51; Fibers - $82; Polymers - $27; Life Sciences - $16; and Diversified Businesses - $80. Includes a $36 gain in third quarter on the sale of Hydrogen Peroxide assets. First quarter includes a $60 charge in Life Sciences for revision, based on independent appraisals, of the purchase price allocation related to purchased in-process research and development in conjunction with the purchase of Protein Technologies International. Third quarter includes a charge of $845 in Life Sciences related to purchased in-process research and development in conjunction with the purchase of Merck's interest in The DuPont Merck Pharmaceutical Company based on preliminary allocations of purchase price which are subject to revision upon obtaining independent valuations by an outside appraisal firm and completion of purchase accounting allocations. Third quarter includes a charge of $109 in Diversified Businesses based on a revised estimate of the purchased in-process research and develop- ment associated with the purchase of the polyester businesses of Imperial Chemical Industries PLC. 1997 - ---- Includes charges of $1,403 for acquired in-process research and develop- ment relating to the Pioneer transaction ($850 in third quarter and $53 in fourth quarter) and the PTI transaction ($500 in fourth quarter). In addition, Life Sciences includes a $62 charge associated with the "Benlate" 50 DF fungicide recall taken in the fourth quarter and a benefit of $72 from the company's equity interest in the gain on the sale by DuPont Merck of its generic and multisource product lines in the third quarter. Includes charges in the third quarter of $220 associated with exiting the company's global graphics arts films and offset printing plates busi- nesses and a fourth quarter charge of $63 for acquired in-process research and development relating to the ICI polyester intermediates and resins transaction. 5 ATTACHMENT I PAGE 3 OF 3 E. I. DU PONT DE NEMOURS AND COMPANY AND CONSOLIDATED SUBSIDIARIES CONSOLIDATED INDUSTRY SEGMENT INFORMATION EXCLUDING IMPACT OF NONRECURRING ITEMS - CONTINUING OPERATIONS (unaudited) (Dollars in millions)
1998 ---------------------------------------------- Sept. 1st Qtr. 2nd Qtr. 3rd Qtr. YTD -------- -------- -------- ------- AFTER-TAX OPERATING INCOME - -------------------------- Chemicals .............................. $174 $155 $161 $ 490 Fibers ................................. 223 220 207 650 Polymers ............................... 226 235 208 669 Life Sciences .......................... 149 249 48 446 Diversified Businesses ................. 80 61 63 204 ---- ---- ---- ------ ATOI from Continuing Operations ........ 852 920 687 2,459 Interest and Other Corporate Expenses, Net of Tax ........................... (70) (81) (77) (228) ---- ---- ---- ------ INCOME FROM CONTINUING OPERATIONS BEFORE EXTRAORDINARY ITEM ............ $782 $839 $610 $2,231 ==== ==== ==== ====== 1997 ----------------------------------------------------------- 1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. Total -------- -------- -------- -------- ------- AFTER-TAX OPERATING INCOME - -------------------------- Chemicals ........................ $140 $135 $152 $163 $ 590 Fibers ........................... 229 239 234 260 962 Polymers ......................... 205 255 224 227 911 Life Sciences .................... 140 243 121 99 603 Diversified Businesses ........... 54 83 50 81 268 ---- ---- ---- ---- ------ ATOI from Continuing Operations .. 768 955 781 830 3,334 Interest and Other Corporate Expenses, Net of Tax ........... (58) (31) (56) (81) (226) ---- ---- ---- ---- ------ INCOME FROM CONTINUING OPERATIONS BEFORE EXTRAORDINARY ITEM ...... $710 $924 $725 $749 $3,108 ==== ==== ==== ==== ======
6 ATTACHMENT II PAGE 1 OF 2 E. I. DU PONT DE NEMOURS AND COMPANY FIVE-YEAR FINANCIAL REVIEW (unaudited) ----------------------------------------- (Dollars in millions, except per share)
1997 1996 1995 1994 1993 ----------- ---------- ----------- --------- ------------- SUMMARY OF OPERATIONS Sales ..................................................... $ 24,089 $ 23,644 $ 24,500 $ 22,518 $ 21,327 Earnings (Loss) Before Income Taxes ....................... $ 2,786 $ 4,347 $ 4,290 $ 3,369 $ (83) Provision for Income Taxes ................................ $ 1,354 $ 1,416 $ 1,432 $ 1,164 $ 1 Income (Loss) from Continuing Operations .................. $ 1,432 $ 2,931 $ 2,858 $ 2,205 $ (84) Per Share of Common Stock - Basic ................... $ 1.26 $ 2.60 $ 2.43 $ 1.61 $ (0.07) Per Share of Common Stock - Diluted ................. $ 1.24 $ 2.56 $ 2.41 $ 1.60 $ (0.07) Net Income ................................................ $ 2,405 $ 3,636 $ 3,293 $ 2,727 $ 566 Per Share of Common Stock - Basic ................... $ 2.12 $ 3.23 $ 2.81 $ 2.00 $ 0.41 Per Share of Common Stock - Diluted ................. $ 2.08 $ 3.18 $ 2.77 $ 1.98 $ 0.41 FINANCIAL POSITION AT YEAR END Working Capital ........................................... $ (2,117) $ 15 $ (2,116) $ 3,208 $ 897 Total Assets .............................................. $ 36,842 $ 32,365 $ 32,748 $ 32,577 $ 33,204 Borrowings and Capital Lease Obligations: Short Term .............................................. $ 6,152 $ 3,907 $ 6,152 $ 1,286 $ 2,790 Long Term ............................................... $ 5,897 $ 5,052 $ 5,646 $ 6,338 $ 6,524 Stockholders' Equity ...................................... $ 11,423 $ 10,616 $ 8,323 $ 12,743 $ 11,135 RATIOS - CONTINUING OPERATIONS BASIS Dividends as Percent of Cash Provided by Operations ....... 35% 31% 23% 34% 35% Cash Provided by Operations as Percent of Total Debt .. 33% 46% 44% 48% 37% Total Debt as Percent of Total Capitalization ......... 51% 45% 58% 37% 45% Return on Average Investors' Capital .................. 7.5% 15.6% 15.1% 11.5% 0.5% Income From Continuing Operations as Percent of Average Stockholders' Equity ............................ 12.5% 30.6% 28.6% 18.4% N/A GENERAL For the Year - Continuing Operations Basis: Capital Expenditures .................................... $ 7,075 $ 1,783 $ 1,810 $ 1,615 $ 1,820 Depreciation and Amortization ........................... $ 1,361 $ 1,525 $ 1,643 $ 1,748 $ 1,656 Research and Development Expense ........................ $ 1,072 $ 991 $ 1,031 $ 1,004 $ 1,086 As percent of Sales ................................... 4.5% 4.2% 4.2% 4.5% 5.1% Average number of Shares (millions) Basic ................................................... 1,131 1,121 1,170 1,360 1,353 Diluted ................................................. 1,150 1,140 1,183 1,371 1,363 Dividends Per Common Share ............................ $ 1.23 $ 1.115 $ 1.015 $ 0.91 $ 0.88 Common Stock Prices High .................................................... $ 69 3/4 $49 11/16 $ 36 1/2 $31 3/16 $26 15/16 Low ..................................................... $ 46 3/8 $34 13/16 $ 26 5/16 $ 24 1/8 $ 22 1/4 Year-End Close .......................................... $60 1/16 $ 47 1/16 $34 15/16 $28 1/16 $ 24 1/8 At Year End: Employees (thousands) ............................... 98 97 105 107 114 Common Stockholders of Record (thousands) ............... 154 158 166 172 181 Book Value Per Common Share ......................... $ 9.90 $ 9.21 $ 7.28 $ 9.18 $ 8.04 - ------------------ See Notes on the following page.
7 ATTACHMENT II PAGE 2 OF 2 NOTES TO FIVE-YEAR FINANCIAL REVIEW [FN] Restated presentation to reflect petroleum business as discontinued operations. Before effect on income of extraordinary item. Restated to reflect two-for-one split of common stock effective May 15, 1997. Does not necessarily reflect the company's estimated debt after the split off of the petroleum business. Restated ratios include 100% of historical debt and equity, but exclude earnings and cash flow from the petroleum business. Table below shows 1997 debt-related ratios adjusted to provide a perspective of the company's financial position after the split off of the petroleum business. These ratios have been adjusted only to reflect an assumed $5,000 reduction in debt had the split off occurred in 1997. 1997 Ratios - reflecting assumed $5,000 debt reduction ------------------------------------------------------ Cash Provided by Operations as Percent of Total Debt ... 57% Total Debt as percent of Total Capitalization .......... 37% Return on Average Investors' Capital ................... 9.7% Includes strategic acquisitions. Includes both continuing and discontinued operations. 8 -----END PRIVACY-ENHANCED MESSAGE-----